good morning sir can u tell me calculation of hra hra rec 8403 p\m rent paid 6500 p\m basic salary 21007 plz sir tell me calculation

 
Hello Rajeev, The calculation for HRA will be as follows

   
HRA is a special allowance given to an employee to meet his rent expenses. It is exempt from tax to the extent of least of the following

• HRA received from employer
• Rent Paid in excess of 10% of the salary
• 40%/50% of the Salary (50 % in case of an individual belongs to metropolitan cities like Mumbai, Delhi, Chennai, Kolkata for all others it is 40%)

       
Your Case
    

   
Basic - Rs 21007
HRA  Received-8403 P.M (100836 P.A)
Rent Paid -6500 P.M ( 78000 P.A)
  

   
Now, HRA will be exempt to the extent of the least of:

• HRA  Received-8403 P.M (100836 P.A)
• 4400 P.M (52800 P.A) excess of rent paid over 10 percent of salary i.e.(6500-(10%21007)
•   Rs  8402 P.M ( 100824 P.A) (40 per cent of salary); or (assuming you are from Non Metropolitan city

    

HRA exemption will be the least of the above i.e. 4400 P.M (52800 P.A)

    

Hence your Taxable HRA is  4003 P.M( 8403-4400) 48036 P.A (Amounts are rounded off to the nearest value)

   

 Note:
•    Salary for HRA= Basic+ DA+ Commission (Paid as a fixed percentage of sales)
•    Above exemption is only available on actual payment of rent

     

With Regards!!!!!

but sir as per my knowledge hra rec. 8403 100836 rent paid 6500 78000 basic salary 21007 252084 hra rec 100836 rent paid - 10% of salary 52792 (78000 -10% of 252084) 40% of salary 100834 least amt. 52792 than taxable hra 48044 plz sir reply

Hello Rajeev, i understood your confusion, remember the least of the amount calculated is the exempted amount. Which means that, to know the taxable HRA you need to deduct this exemption amount from the HRA received from the employer 

     

In your case exempted income we got is 52792 while the HRA received from the employer is 8403 (100836). To know the taxable HRA you need to deduct the HRA allowance received (100836) -Exempted amount (52792) which is equal to 48044 which is taxable

     

Hope you understood this time  

 

good morning sir, for hra calculation thanks a lot . but sir tell me one thingh what is the difference between your and my calculation

 Hello Rajeev, the only difference is i have rounded off the value to the nearest rupee and cone the calculation thats the reason you can see small difference in the values. If you observe carefully i have also mentioned in the above that the values are rounded off to the nearest rupee

 

With Regards!!!!

THANKS SIRRRR